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DECISION No

DECISION No.103/1998/QD-TTg OF JUNE 4, 1998 TO SUPPLEMENT DECISION No.675-TTg ON THE EXPERIMENTAL APPLICATION OF A NUMBER OF POLICIES IN MONG CAI BORDER GATE AREA OF QUANG NINH PROVINCE

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

At the proposal of the President of the People's Committee of Quang Ninh province in Official Dispatch No.224/1998/TT-UB of March 14, 1998 and after considering opinions of the relevant ministries and branches at the central level,

DECIDES:

Article 1.- To supplement Decision No.675-TTg of September 18, 1996 of the Prime Minister on the experimental application of a number of policies in Mong Cai border gate area of Quang Ninh province with the following contents:

1. Regarding policy on trade development.

1.1. Enterprises of different economic sectors, set up in accordance with the provisions of law and having their head offices in Mong Cai border gate area, shall be entitled to directly import and/or export goods (except for commodities banned from import and/or export by the State). The import and/or export of commodities subject to State management by quotas, by norms or conditions, shall comply with the current stipulations of the State and guidances of the Ministry of Trade.

1.2. Foreign goods temporarily imported into Mong Cai border gate area for re-export must be kept in bonded warehouses and when they are re-exported to other countries, the re-export procedures must be filled; if the goods are imported into domestic market, their owner shall have to abide by the relevant regulations on such goods and pay import tax in accordance with the current regulations. In cases where the goods kept in bonded warehouses in Mong Cai border gate area cannot be further delivered, they must be sent back to the place of origin. The People's Committee of Quang Ninh province shall discuss and reach agreement with the General Department of Customs, the Ministry of Finance and the Ministry of Trade on organizing the implementation thereof.

1.3. Raw materials, materials and supplies imported into Mong Cai border gate area for the production of export goods or import substitutes shall be subject to import tax and entitled to the tax reimbursement when being exported in accordance with the current stipulations of the State.

Materials and supplies used for the production of import substitutes at Mong Cai border gate area shall be entitled to profit tax and/or turnover tax exemption. The Ministry of Planning and Investment shall annually promulgate the list of import substitutes, and the Ministry of Finance shall determine, inspect and allow the tax exemption.

1.4. Export goods produced in Mong Cai border gate area and subject to taxes shall be entitled to the current lowest tax rates.

1.5. The Ministry of Trade shall authorize and provide guidances for the People's Committee of Quang Ninh province to grant licenses for the establishment of representative offices and branches of foreign companies in the field of trade in Mong Cai border gate area and grant permits to domestic and foreign organizations for organizing goods exhibitions-cum-fairs.

2. Regarding policy on services and tourism.

2.1. Visitors traveling from foreign country(ies) directly to international seaports of Quang Ninh province by ships under contracts signed with domestic tourist companies shall fill entry-exit procedures right at the ports with assistance of Vietnamese entry-exit management agency and be allowed to visit Mong Cai border gate area.

2.2. To allow Quang Ninh province to plan and build an entertainment and recreation center in Mong Cai border gate area. The People's Committee of Quang Ninh province shall assume prime responsibility and coordinate with the concerned ministries and branches in formulating a detailed project for such center in order to ensure that cultural and sports activities therein are healthy and suited to the fine traditions and customs of Vietnam.

3. Regarding policy on investment and infrastructure construction:

3.1. The People's Committee of Quang Ninh province is entitled to apply current regimes and policies on the promotion of domestic investment in Mong Cai border gate area (Decree No.07/1998/ND-CP); and at the same time study particular regimes and policies for this area and submit them to the Prime Minister for consideration and decision.

3.2. The People's Committee of Quang Ninh province is allowed to decide the transfer by investors of their land use right and architectural constructions according to the land use purposes of the ratified projects; in case of a change of the initial investment purposes, it must be approved by the competent agency.

3.3. Organizations and/or individuals calling for investment in Mong Cai border gate area are allowed to coordinate with consultancy service companies in compiling to-be-submitted dossiers, and enjoy a dossier compilation charge according to the regulation on the practice of investment consultancy service.

3.4. The President of the People's Committee of Quang Ninh province shall be allowed to sign decisions ratifying capital construction projects of Groups B and C, on the basis of agreement with the Ministry of Planning and Investment. With regard to the use of capital sources according to Decision No.675-TTg for investment projects in Mong Cai border gate area, the provincial People's Committee shall discuss in detail with the Ministry of Planning and Investment and the Ministry of Finance for the arrangement of capital to ensure the construction timetable.

Article 2.- Organization of implementation:

To ensure the effective management of economic activities in Mong Cai border gate area, the People's Committee of Quang Ninh province is assigned to organize a proper apparatus, with clear-cut division of management responsibilities and at the same time issue regulations on necessary preferential treatment in order to attract capable and virtuous cadres to Mong Cai border gate area.

Article 3.- This Decision takes effect 15 days after its signing. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the President of the People's Committee of Quang Ninh province shall, according to their respective functions, tasks and powers, have to implement this Decision.

Prime Minister

PHAN VAN KHAI